Ding Rulin1,3, Liu Jiaxun2,3*, Zhang Yingqi
1.Guangzhou Xinhua University; 2.Nanning University; 3.Faculty of Finance, City University of Macau
Abstract：
The value-added tax (VAT) credit refund policy is a key component of China’s recent tax reduction initiatives. However, rigorous micro-level evidence regarding its efficacy, particularly in strategically vital sectors, remains limited. Using A-share listed firms from 2014 to 2023 as the research sample, this study treats the 2018 VAT credit refund reform as a quasi-natural experiment and applies a difference-in-differences approach to examine its impact on the performance of firms in the chip industry. The results indicate that firm performance in the chip industry improved significantly following the implementation of the VAT credit refund policy, and the findings remain robust under parallel trend tests and alternative performance measures. Further analysis suggests that the policy may affect firm performance by alleviating financing constraints. These findings provide micro-level empirical evidence for evaluating the effectiveness of the VAT credit refund policy and offer implications for policy refinement.
Key Words：
VAT credit refund; chip industry; firm performance; difference-in-differences
